The role of earnout financing on the valuation effects of global diversification

This article examines the impact of earnout financing on the value of acquiring firms engaged in cross-border acquisitions (CBAs), using a dataset of UK, US, Canadian and Australian firms from 1992 to 2012. The results show that firms initiating international business operations via earnout-financed CBAs enhance their value more than acquirers in (a) domestic acquisitions and (b) remaining CBAs by established multinational corporations (MNCs). Our findings demonstrate the superiority of earnout financing in CBAs announced by acquirers that have no prior international business experience. The results are robust to the firms’ endogenous choice to diversify globally and to the use of earnout financing. We contend that earnouts contribute to the reduction of valuation risk faced by firms acquiring a foreign target firm for the first time. Our empirical findings contribute to the existing debate on the merit of international expansion through CBAs and the role of earnout contingent payment

The Consumer Motivation Scale: A detailed review of item generation, exploration, confirmation, and validation procedures

This data article offers a detailed description of analyses pertaining to the development of the Consumer Motivation Scale (CMS), from item generation and the extraction of factors, to confirmation of the factor structure and validation of the emergent dimensions. The established goal structure – consisting of the sub-goals Value for Money, Quality, Safety, Stimulation, Comfort, Ethics, and Social Acceptance – is shown to be related to a variety of consumption behaviors in different contexts and for different products, and should thereby prove useful in standard marketing research, as well as in the development of tailored marketing strategies, and the segmentation of consumer groups, settings, brands, and products